Reports from IMF and French economists call for climate taxes on international aviation fuel or air travel

Two reports, one an International Monetary Fund (IMF) internal discussion note and the other by the Paris School of Economics (PSE), suggest taxing international aviation fuel or air travel could provide an equitable solution to raising global finance for climate mitigation and adaptation. The IMF says there is an immediate need for governments to follow up the Paris Agreement reached last month with fiscal policies that put carbon pricing “front and centre” in efforts to reduce carbon emissions. Substantial amounts – upwards of $25 billion – could be raised from charges on international aviation and maritime fuels, says its discussion note. The PSE paper by Lucas Chancel and best-selling author Thomas Piketty estimates a €180 ($200) levy on business class tickets and €20 ($22) on economy class would raise around €150 billion ($165bn) a year for climate adaptation. However, an effort to include a call for a levy on the aviation and shipping sectors was rejected by countries in the lead-up to the Paris climate negotiations. [...]

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